The clinical-stage biopharmaceutical company that focuses on developing treatments for liver disease, immune-modulating therapies, and vaccines, Altimmune Inc. (NASDAQ: ALT) shows signs of an upcoming price surge according to its latest charts.
Bullish Indications
#1 Channel Breakout: The daily chart of ALT shows that the stock was trading within a channel for the past few months. This channel is marked in the daily chart in purple color. Currently, the stock has broken out of this channel with high volume, indicating that it has the potential to surge ahead.
Daily Chart – ALT
#2 Above MA: The stock is currently trading above its long-term moving average of 200-day SMA. This indicates the overall bullishness of the stock.
#3 MACD above Signal Line: As you can see from the daily chart, the MACD line (blue color) has currently crossed above the MACD signal line (orange color). This indicates a possible bullish bias.
#4 Bullish ADX and DI: The ADX indicator shows bullishness because the +DI line is above the -DI line and the ADX line has started to move higher from below the +DI and -DI lines.
#5 Bullish RSI: The daily chart shows that the RSI is currently above 50 and moving higher, indicating the strength of the current upmove.
#6 Trendline support: The daily chart shows that the stock is moving higher after taking support near the uptrend line, which is marked in pink color. This is a possible bullish indication.
#7 Fibonacci Support: The weekly chart shows that the stock has currently bounced back higher after taking support at the 38.2% Fibonacci level. This is a possible bullish sign.
Weekly Chart – ALT
#8 Bullish RSI: The RSI is currently above 50 and moving higher in the weekly chart as well. This is a possible bullish sign.
#9 Bullish ADX and DI: In the weekly chart as well, the ADX indicator shows bullishness. This is because the +DI line and the ADX line is above the -DI line and the ADX line has moved higher from below the -DI and +DI lines.
Recommended Trade (based on the charts)
Buy Price: If you want to get in on this trade, you can purchase the shares of ALT if it closes above the price of around $16.50.
TP: Our target prices are $20 and $25 in the next 3-6 months.
SL: To limit risk, place a stop loss at $14.20. Note that this stop loss is on a closing basis.
Our target potential upside is almost 21% to 52% in the next 3-6 months.
For a risk of $2.30, our target rewards are $3.50 and $8.50. This is an almost 1:2 and 1:4 risk-reward trade.
In other words, this trade offers 2x to 4x rewards when compares to risks.
Risks to Consider
The stock may reverse its overall trend if it breaks down with high volume from the channel. The sell-off of the stock could also be triggered in case of any negative news, overall weakness in the market, or any regulatory changes in the sector.
Happy Trading!
— Tara
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